Organizations need to constantly renew and update their product and service portfolio. This is nothing new. What is new, however, is the speed at which this needs to happen – because digitalization, complex dynamics, and the increasing opacity of markets have greatly accelerated innovation cycles in recent years. Organizations are challenged to develop new and creative solutions in the face of fierce competition in order to continue to meet the needs of their customers.
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In addition to implementing appropriate structures, it is important for managers to link the different strands in such a way that they can become effective.
For example, if the explorative strand works in isolation and without consideration of organizational opportunities, it can add little value to the organization – feedback is needed to work together toward the organization’s future viability. Likewise, there is a need to sensitize the exploitative strand, which is often subject to rigorous processes and, in some cases, austerity measures, to the fact that the resources provided to the exploratory strand are wisely invested. The areas of tension that arise here should not be underestimated.
Leaders are challenged
- to ensure the transfer of knowledge between the two strands,
- to hand over responsibility where it makes sense and is necessary, and to trust the employees,
- give both strands the space and guidance they need to do their work.
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